Due Date of 945 Tax Payment - FIT withholding on pension distributions

[MarZDoates]

Does anyone know if the employer's payroll tax liability and 945 tax liability are combined for purposes of the timing of depositing form 945 tax?

Client remits payroll taxes semi weekly.

In looking at the instructions for the 945, it says that if tax liability reported on the prior year's 945 is less than $50,000, the employer is a monthly tax depositer.

Client received a penalty notice for not paying 945 tax timely. Amount of 945 liability in 2012 was 0. 945 Tax for 2013 was $3,000.

Tax liability date was 3/14/13. Tax was remitted on 4/12/13 through EFTPS.

Thank you.

[Lou S.]

Does the trust have a seperate TIN or are they using the employer EIN? I think that may control for timing but I'm not 100% sure.

[Bird]

Does anyone know if the employer's payroll tax liability and 945 tax liability are combined for purposes of the timing of depositing form 945 tax?

They shouldn't be, but you never know how things get connected in the computers. Obviously if they are using the same tax id number, then that would be the linkage. I'd write a letter explaining that they are a monthly depositor and show evidence of the dates.

[MarZDoates]

They did remit using the EIN of the corporation. I wondered if that would be the case.

Thanks for the responses.

[Kevin C]

The withholding amount reported on their 2011 Form 945 determines their deposit schedule for 2013.

Per the Publication 15, Circular E:

If you are a Form 945 filer, your deposit schedule for a

calendar year is determined from the total taxes reported

on line 3 of your Form 945 for the second preceding calendar

year. The lookback period for 2014 for a Form 945

filer is calendar year 2012.

http://www.irs.gov/pub/irs-pdf/p15.pdf

It's in section 11, starting at the bottom of page 25. Is there more than one plan being reported as 945 deposits under the employer's EIN?

[MarZDoates]

No...just one plan.